If the price elasticity of demand for automobiles is 2:

A. a 10 percent increase in price would result in a 10 percent decrease in quantity demanded.
B. a 10 percent increase in price would result in a 20 percent increase in quantity demanded.
C. a 10 percent decrease in price would result in a 20 percent decrease in quantity demanded.
D. a 10 percent decrease in price would result in a 20 percent increase in quantity demanded.


Answer: D

Economics

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Economics